What Can Happen Without Title Insurance?

Getting title insurance is one of the most common and standard steps future homeowners take before buying their Maryland home. Title insurance is of the utmost importance for a home buyer as it protects a home buyer and the lender in case your seller didn’t have free and clear ownership of the house and property, and therefore could not legally sell it. Even though the chance of this is low, it is a worthwhile precaution to take, as without it you could potentially lose your house.

Title insurance is a good idea to protect you from potential unknown problems with your title.

Worst Case Scenario

It may seem strange to think that somebody may try to sell a house they don’t own, but more often this is due to ignorance rather than any kind of plot. Many of the stipulations and laws surrounding home ownership are complex and can be confusing, which can lead the everyday person, who is not well-versed in them, to make mistakes. While there have been instances of renters trying to sell homes they don’t own, and other such scams, usually it comes to down to oversights.

For example, a seller may have bought a place from a single person, without realizing that their ex-spouse still co-owned the property and hadn’t signed off on the sale. Or the seller may have even inherited the house in an out-of-date will, without realizing that there had been changes. In these cases, you would lose the house without title insurance.

Smaller Problems

Not every title issue involves the entire house and property. Liens may have been filed against the house in order to settle the debt of the previous owner. Typical debts include taxes, child support, and contractor’s fees. These stick to the house until it is legally sold or foreclosed on. In these situations, title insurance comes to the rescue for homeowners who have unknowingly stepped into a sticky situation.

About Colony Title Associates

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings in Washington DC and the Delmarva area every year. The founder Tee Tillman has over 23 years of experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers.

Colony is the preferred choice for many real estate brokers in the Maryland area. If you have any questions concerning issues that title insurance protects you from, feel free to contact us at 410 884-1160 or visit ColonyTitle.com today!